The average house price in the UK is now £265,000
The current £500,000 threshold stamp duty holiday ends on June 30, with a gradual return to normal levels expected by the September deadline.
The question on everyone’s mind now is what the end of the stamp duty holiday will mean for the housing market.
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The stamp duty holiday has buoyed the property market during the pandemic, leading to increased demand for properties and soaring house prices.
The average house price in the UK rose by 8.9% in the year to May 2021 and now stands at £265,000, according to figures released by the ONS.
A survey carried out by property buying firm Goodmove found that 39% of Brits took advantage of the stamp duty holiday when buying a home in the past year. It is estimated that they saved up to £15,000.
Ross Counsell, chartered surveyor and director at Goodmove, said: “The stamp duty holiday and the demand for wider properties, spurred by lockdown, have contributed to the success of the property market in what has been a very difficult year for other industries. contributed to.”
But what does the stamp duty holiday exemption mean for the housing market for the rest of 2021?
“HPI’s annual statistics show that the housing market is highly saturated as people rush to buy properties to meet deadlines.Increased demand reflects house price inflation. Mortgage approvals and new real estate buyer inquiries increased by 44%⁴,” said Ross Counsel.
“In some ways, the government’s decision to eliminate stamp duty and contract exchange may be beneficial in the long run.We expect demand to decline from October onwards once the deadline officially ends, so we are rushing to meet the deadline. This year is expected to be a good time to buy real estate before it’s too late.
Counsel said buyers should wait until the new deadline ends to purchase property.
“My advice to anyone considering buying property is simple: light the fire. If the statistics are anything to go by over the past year, stamp duty only benefits one side of the coin: the seller. “If buyers can wait until the deadline is over, they should be able to expect to save significantly on the purchase of the property,” Counsell said.
“Your home is central to you and your family, and with only three months until the stamp duty deadline, it’s worth buyers taking their time to find their dream property. Don’t rush it, as it can cause dissatisfaction in the long run.
